What Happens to My PMI or MIP After an Assumption?

The Assumable Guy Show · May 28, 2026 · 6m

Sellers with FHA loans ask this one constantly, and the answer is cleaner than most people expect. Ryan breaks down the difference between PMI and MIP, why VA loans do not have monthly mortgage insurance at all, and exactly what happens to that FHA insurance payment the day an assumption closes. Short version: it transfers to the buyer and the seller is done. He also walks buyers through the real math on taking over an FHA loan with MIP included, showing that even with $183 a month in insurance added to the payment, you are still saving $765 a month compared to a conventional loan at 6.5%…